Posted on 07/18/2024 12:51:38 PM PDT by nickcarraway
Caleb Williams has finally signed his rookie contract with the Chicago Bears. What took so long? Williams’ representatives were reportedly making some unprecedented requests for his contract before he put his name on the dotted line.
Williams was still participating in rookie and team activities, but he hadn’t signed his four-year, $39 million deal with the Bears until earlier this week. According to Pro Football Talk, there were differences in the language of Williams’ contract, including one odd request I don’t think I’ve ever seen a player make.
Per Mike Florio, Williams requested that his contract be paid in the form of an LLC, or to make his contract a forgivable loan. What both of these would accomplish, you might ask? They would keep him from paying taxes to the state of Illinois. In Illinois, LLCs have zero income tax filing requirements, and to make his deal a forgivable loan, he wouldn’t have to pay taxes on his deal until the loan was forgiven, “up to 10 years in the future” according to Florio.
The Bears took both requests to the NFL, because there’s nothing in the rules that says this can’t happen. The NFL disagreed, saying William’s money can’t go to a business entity other than the player, per Florio. There was no reason given for why the league axed the idea of a forgivable loan.
Honestly, I would ask for the same thing. Taxes stink, and if there’s any way to legally avoid said taxes I would find any way to. This is pretty genius by Williams’ camp, just to even float that possibility. No other player has asked for this before, but I bet you more will start to ask after Williams did.
That being said, it would be incredibly funny to hear a Sunday Night Football intro for a Bears game, and Williams says “Caleb Williams, LLC.”
I would setup a talent agency in Florida. In exchange for $39 million, that agency would provide a specific football player to an NFL team. The agency would fund a retirement account FBO the player per IRS limits. The agency would purchase housing and make it available to the player use for $1 per year. The agency would purchase an insurance policy FBO the player in the event of a catastrophic career-ending injury. The agency would purchase and maintain transportation for the exclusive use of the player. The player would receive a salary of $15,000 per game per year for services as a football player.
This would be with free agents?
The game is officially dead. Chicago should trade him for a decent veteran qb...and 5 draft choices. While he is playing in the watered down ncaa football leagues he looks great. Against fast linebackers and other fast defenses in the NFL...he won’t look so good. Maybe looks good in first year...
He can have a legal residence in any state & just rent during the season.
He DOESN’T WANT TO HAVE MEDICARE TAXES DEDUCTED from his remuneration. I know of people who do this for that purpose.
That or set up a foundation like the Clinton Foundation or Gates Foundation.
He’s going to be a bust, in the neighborhood of JaMarcus Russell.
But what if it is treated as a loan?
They should structure the contracts to pay players the league minimum when they play in high income tax states, and make up the difference for games they play in low or no income tax states. For example/illustration - $20,000 for a game in Chicago, and $2 million for games in Texas and Florida.
As for the LLC thing, I imagine he can do all the side deals, promotions, advertising money in a no tax state.
It is. Especially your assets, because you can separate your personal assets from the business.
I thought athletes and entertainers were already LLCs?
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